Last year, Latvian fintech company DelfinGroup continued to increase its growth rates in all business segments, focusing on developing circulation of pre-owned goods and introducing innovative solutions. The company's revenue increased by 41% year-on-year to 50.4 million euros. EBITDA of DelfinGroup increased to 18.2 million euros, up 39% compared to 2022, while profit before tax increased by 14% to 8,3 million euros.
"According to the unaudited financial results for 2023, DelfinGroup has exceeded its previously set strategic targets for 2023. The company's loan portfolio reached a record level of 89 million euros at the end of 2023, which is a 116% fulfillment following the previously set goals. The EBITDA target of 17 million euros has also been exceeded - EBITDA has grown to 18.2 million euros, representing a 107% execution. Profit before tax reached 8.3 million euros, meeting the target of 8 million euros by 104%," says Didzis Admidinš, Chairman of the Management Board of DelfinGroup.
Summarising the results for the fourth quarter of 2023, the revenue of DelfinGroup increased by 32% year-on-year to 13.9 million euros, while the EBITDA of DelfinGroup increased to 5.1 million euros, up by 34% compared to the fourth quarter of 2022. Profit before tax increased by 22% to 2,3 million euros.
"Due to the fact that DelfinGroup has strengthened its position in both the retail and financial services sectors, the company's net profit for 2023 has reached 6.6 million euros, an increase of 11% compared to 2022. However, with the new amendments to the Corporate Income Tax (CIT) Law, which requires banks and non-bank lenders to apply CIT at 20% on their profits for the year, the total net profit for 2023 is lower than expected," explains Didzis Admidinš.
Circulation of pre-owned goods is growing
In total, sales of pre-owned and new goods reached 14.7 million euros, a 29% increase compared to the same period last year.
"Last year, DelfinGroup focused on promoting the retail of pre-owned goods by further developing the Banknote online store and launching a remote goods buying platform, as well as opening new and modern branches, including in Riga, Marupe, and Jekabpils. With new and innovative solutions in the development of digital trading platforms, we can now provide a full product lifecycle, which includes buying goods, repairing them as needed, and reselling them. We have also purposefully introduced new innovative solutions to the market, such as the Banknote virtual card with a credit line and a mobile application, significantly improving the user experience," comments D. Admidinš.
The company's loan portfolio reaches a record level
Meanwhile, loan issuance last year reached 92.3 million euros, an increase of 15% year-on-year.
Analysing the results in the lending segment, DelfinGroup points out that thanks to the high demand for transparent and customer-orientated financial services, the company's loan portfolio exceeded the annual target in mid-2023. As a result, in the fourth quarter of 2023, the company focused more on improving the quality of its portfolio and optimising its funding costs, focusing on increasing its profitability.
This year, new branches in Lithuania
Last year, the company also started business development in Lithuania, opening five branches of the circular economy concept Banknote in Vilnius in its first international development phase and launching an online store in early 2024. Looking ahead to this year, the company plans to gradually open more branches in major Lithuanian cities and expand its range of services and products.
"DelfinGroup will continue to work on innovative solutions this year, adapting to market requirements and, at the same time, providing customers with even more modern and affordable financial services. We will continue the course we have taken, strengthening our position in the financial services and retail sectors," comments D. Admidinš.
About DelfinGroup
AS DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia and Lithuania. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.
For further information, please contact:
Aldis Umblejs,
DelfinGroup Chief Financial Officer
Phone: +371 26189988
E-mail: IR@delfingroup.lv
